If the expected gains on stocks rise, while the expected returns on bonds do not change, then
A) the demand curve for bonds will shift to the right.
B) the supply curve for loanable funds will shift to the right.
C) the equilibrium interest rate will fall.
D) the equilibrium interest rate will rise.
D
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Refer to Figure 10.1. If only one light is installed, the person who is responsible for the light being installed receives a payoff of
A) 2. B) 4. C) 6. D) 8.
If the price elasticity of demand for a good is 0.8, then a
A) 1 percent rise in the price leads to a 0.8 percent decrease in the quantity demanded. B) one dollar rise in the price leads to a 0.8 percent decrease in the quantity demanded. C) 1 percent rise in the price leads to an 80 percent decrease in the quantity demanded. D) 1 percent rise in the price leads to an 8 percent decrease in the quantity demanded.
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. Should you go to the concert instead of working Saturday?
A. Yes, the benefit of going to the concert is more than the cost. B. No, because there are no benefits of going to the concert. C. No, the benefit of going to the concert is less than the cost. D. Yes, the benefit of going to the concert is equal to the cost.
Labor unions in the United States
A. tend to be more outspoken politically than those in Europe. B. have experienced steady declines in membership since the 1950s. C. tend to be more powerful in deregulated industries (e.g., airlines) than in regulated industries. D. universally support socialist principles.